February 28, 2021
The industry of finances and payments are constantly developing. Facing a need to make/receive a payment, one should be aware of the payments glossary. Let's have a look at the most important terms.
This is an authentication process developed by Mastercard and Visa where three parties are involved. Those are the selling company, this company's bank, and the credit card's issues.
An acquiring bank is an intermediary that helps a business owner to accept payments when paying for goods or services with a payment card.
It's a system that compares the billing address with the address on the buyer’s credit card to prevent fraud.
Such a number consists of the first 6 digits of a card number (speaking about Visa and Mastercard). It is needed to identify the origin of a card.
There are three types of card verification codes: CVV2, CVC2, CID. Three-digit codes are printed either on the front or on the back of cards. Code presentation when making a purchase provides a higher security level.
A chargeback is a universal procedure for canceling a transaction. In other words, it is a refund of the payment to the holder's card.
It is the company that acts as an intermediary for parties involved in transactions.
The percentage of money paid to the merchant account processing company for a transaction.
A risk of transactional problems (fraud, etc.).
Reserve money that will be paid to a merchant after specific conditions are achieved.
An institution that offers credit cards and is responsible for their use.
A process that protects institutions against fraud (customers provide personal documents, etc.).
A group of people sharing the same buyer characteristics.
It's a code that consists of four digits. It's needed to process transactions.
This term is applied to retailers who sell goods using a certain platform.
A purchase made without a physical presenting credit card to a merchant.
An instant transaction type used for instant money withdrawal.
A specific customer's identifier in transactions.
A physical device used to process credit card transactions.
Instant processing of a transaction.
A request to get a transaction receipt.
Canceling/refunding a transaction made because of an error.
A security technology that makes transfers over open networks safe.
Understanding all these terms is extremely important for any person, as all of us face the need to make a transaction from time to time.
